Milwaukee Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Milwaukee, Wisconsin?

The rise of short-term rental platforms like Airbnb and VRBO has transformed the hospitality industry, offering travelers a unique and often more affordable alternative to traditional hotels. However, this growing trend has also raised concerns among local communities, leading many cities to implement regulations to address the potential impacts on neighborhoods, housing markets, and public safety.

Milwaukee, Wisconsin is no exception. As the popularity of short-term rentals has increased in the city, local officials have worked to strike a balance between supporting the tourism industry and protecting the interests of residents.

The result is a complex regulatory framework that short-term rental hosts must navigate to operate their businesses legally and responsibly.

Starting a Short Term Rental Business in Milwaukee

Short-term rentals have become increasingly popular in Milwaukee, as they offer travelers a unique and often more affordable alternative to traditional hotels. However, the rise of short-term rentals has also raised concerns among residents about issues such as noise, safety, and the impact on local housing markets and property values.

To start a short-term rental business in Milwaukee, you must first obtain a permit for each short-term rental property from the local government. This process typically involves providing information about the property, the intended use, and compliance with various regulations. Prospective short-term rental hosts must familiarize themselves with the local regulations and tax requirements to ensure they are operating their business legally and responsibly.

The regulations surrounding short-term rentals in Milwaukee are complex and multifaceted, as the city seeks to balance the benefits of this industry with the potential drawbacks. Hosts must navigate a web of zoning laws, licensing requirements, and tax obligations to operate their businesses within the confines of the law.

Short Term Rental Licensing Requirement in Milwaukee

In Milwaukee, short-term rentals are allowed without the need for a special use permit. However, hosts must secure a Tourist Rooming House license through the City of Milwaukee Neighborhood Services to comply with local regulations. This license is designed to ensure that short-term rental properties meet certain safety and quality standards, and that hosts are aware of and abide by the city's rules and regulations.

The process of obtaining a Tourist Rooming House license typically involves submitting an application, providing proof of insurance, and demonstrating compliance with zoning and building codes. Hosts may also be required to pay an annual fee to maintain their license.

The licensing requirement is a crucial component of Milwaukee's approach to regulating short-term rentals. By requiring hosts to obtain a license, the city can ensure that these properties are operated in a safe and responsible manner, and that they do not negatively impact the surrounding neighborhoods.

Required Documents for Milwaukee Short Term Rentals

In addition to the Tourist Rooming House license, hosts in Milwaukee must also provide several other documents when operating a short-term rental property. These include:

• Proof of insurance: Short-term rental hosts must have appropriate insurance coverage to protect themselves and their guests in the event of an accident or incident.
• Proof of payment of transient room tax: Milwaukee imposes a 10% hotel tax on short-term rental stays, and hosts must demonstrate that they are collecting and remitting this tax.
• Proof of compliance with all applicable zoning and building codes: Short-term rental properties must meet the city's standards for safety, occupancy, and other regulatory requirements.

Failure to provide these required documents can result in fines or other penalties for short-term rental hosts. The city takes these requirements seriously, as they are designed to protect the safety and well-being of both guests and the surrounding community.

Milwaukee Short Term Rental Taxes

Owners of short-term rental properties in Milwaukee are required to pay several different taxes, including:

• Property tax: Short-term rental properties are subject to the same property tax rates as other residential or commercial properties in the city.
• Innkeeper's tax: Milwaukee imposes a 10% innkeeper's tax on short-term rental stays, which is in addition to the state's sales tax.
• Gross income tax: Short-term rental hosts must also pay taxes on the income they generate from their rental activities.

These tax requirements can add significant costs to operating a short-term rental business in Milwaukee, and it's important for hosts to factor these expenses into their overall business model. Failure to pay the required taxes can result in penalties and other legal consequences.

Milwaukee wide Short Term Rental Rules

In addition to the specific requirements for short-term rentals in Milwaukee, there are also broader state-level regulations that apply to these types of properties. Under Wisconsin law, local governments are limited in the types of regulations they can impose on short-term rentals, and they cannot prohibit or restrict the rental of residential properties for periods of 7 consecutive days or longer.

However, local governments can still regulate short-term rentals through zoning, building and housing standards, rental permits, and taxation. In Milwaukee, this means that short-term rental hosts must comply with all relevant zoning and building codes, obtain the necessary permits and licenses, and pay the required taxes.

The city's approach to regulating short-term rentals is part of a broader effort to balance the needs of the tourism industry with the concerns of local residents. By imposing licensing requirements, tax obligations, and other regulations, Milwaukee aims to ensure that short-term rentals are operated in a way that is safe, responsible, and respectful of the surrounding community.

Does Milwaukee strictly enforce STR rules? Is Milwaukee Airbnb friendly?

There is limited publicly available information on how strictly Milwaukee enforces its short-term rental regulations, and whether the city is considered "Airbnb friendly" compared to other destinations. However, some insights can be gleaned from anecdotal reports and discussions on real estate forums like Bigger Pockets and Reddit.

Some hosts in other cities have expressed frustration with short-term rental regulations, particularly the requirement to obtain a permit and pay taxes. They argue that these requirements can be burdensome and make it difficult to operate a profitable short-term rental business. Others, however, have emphasized the importance of complying with local laws and regulations to avoid fines and other penalties.

In the case of Milwaukee, new rules for Airbnb operators and other short-term rentals could be in place by the July 2024 Republican National Convention, which is expected to bring a significant influx of visitors to the city. This suggests that the city may be taking a more proactive approach to regulating short-term rentals in the lead-up to this major event.

Overall, it's difficult to say with certainty how strictly Milwaukee enforces its short-term rental rules or whether the city is considered particularly "Airbnb friendly." The limited available information suggests that the city takes these regulations seriously, but the experiences of individual hosts may vary.

Some hosts may find the regulatory environment in Milwaukee to be more restrictive than in other cities, while others may view the city's approach as a necessary balance between the needs of the tourism industry and the concerns of local residents.

How to Start a Short Term Rental Business in Milwaukee

If you're interested in starting a short-term rental business in Milwaukee, here are the key steps to follow:

• Obtain a permit for each short-term rental property from the Milwaukee Department of Neighborhood Services. This process will involve providing information about the property, the intended use, and compliance with various regulations.
• Familiarize yourself with the local regulations, including zoning, building and housing standards, and tax requirements. Ensure that your short-term rental property meets all applicable codes and standards.
• Ensure you have the required documents, such as proof of insurance, proof of transient room tax payment, and proof of compliance with zoning and building codes.
• Register your short-term rental property with the city and pay the necessary taxes, including property, innkeeper, and gross income taxes.
• Maintain accurate records of your rental activities and tax payments, as you may be subject to audits or other compliance checks by the city.
• Stay up-to-date on any changes to the short-term rental regulations in Milwaukee, as the city may update its rules and requirements over time.

The process of starting a short-term rental business in Milwaukee can be complex and time-consuming, but it is essential to ensure that you are operating your business in compliance with all applicable laws and regulations.

By following these steps and working closely with the Department of Neighborhood Services, you can increase your chances of success and avoid potential penalties or legal issues.

Who to contact in Milwaukee about Short Term Rental Regulations and Zoning?

For more information about short-term rental regulations and zoning in Milwaukee, you can contact the Milwaukee Department of Neighborhood Services. Their contact information is as follows:

Milwaukee Department of Neighborhood Services
841 N. Broadway, Room 104
Milwaukee, WI 53202
Phone: (414) 286-2268
Email: dns@milwaukee.gov

The department's website also provides detailed information about the city's short-term rental regulations, the permit application process, and other relevant requirements.

The Department of Neighborhood Services is the primary point of contact for short-term rental hosts in Milwaukee. They can provide guidance on the licensing and permitting process, answer questions about the city's regulations, and assist with any compliance issues that may arise.

By working closely with the department, short-term rental hosts can ensure that they are operating their businesses in a way that is both profitable and compliant with local laws.

What do Airbnb hosts in Milwaukee on Reddit and Bigger Pockets think about local regulations?

Unfortunately, there is limited publicly available information on what Airbnb hosts in Milwaukee think about the city's short-term rental regulations. The discussions on real estate forums like Reddit and Bigger Pockets tend to focus more on the experiences of hosts in other cities, where the regulatory environment may be quite different.

However, some general insights can be gleaned from these forums. Some hosts in other cities have expressed frustration with the requirement to obtain a permit and pay taxes, arguing that these requirements can be burdensome and make it difficult to operate a profitable short-term rental business. Others have emphasized the importance of complying with local laws and regulations to avoid fines and other penalties.

In the case of Milwaukee, the limited available information suggests that the city takes its short-term rental regulations seriously, and that new rules may be implemented in the lead-up to the 2024 Republican National Convention. This could indicate that Airbnb hosts in Milwaukee may face a more stringent regulatory environment compared to some other cities.

Ultimately, the experiences of individual Airbnb hosts in Milwaukee may vary, and it's difficult to draw definitive conclusions from the limited available information. Prospective short-term rental hosts in the city would be well-advised to thoroughly research the local regulations and requirements, and to engage with the Department of Neighborhood Services to ensure they are operating their business in compliance with all applicable laws and regulations.

It's worth noting that the short-term rental industry is rapidly evolving, and the regulatory landscape in Milwaukee and other cities is likely to continue changing over time. As such, it's essential for short-term rental hosts to stay informed about the latest developments and to be prepared to adapt their business practices as necessary to remain compliant with local laws and regulations.